Superdry is drawing up plans to close UK stores and cut rents as the group works with advisers at PwC on restructuring plans.
Options for the retailer could include a company voluntary arrangement (CVA).
The struggling business has been attempting to negotiate consensual rent cuts on problematic stores.
Superdry currently operates 216 shops, with 96 based in the UK.
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The development comes after the group’s boss Julian Dunkerton admitted Superdry was facing a “difficult period” ahead, as it posted widening losses and revealed CFO Shaun Wills had quit the business.
The retailer’s sales plunged 23% to £219.8m in the half to 28 October, which it blamed on a challenging retail market, unseasonable weather and underperformance of its wholesale segment.
However, Superdry had seen some “more encouraging trends” during the recent cold snap, with sales falling at a slower rate of 13.7% in the 12 weeks to 20 January.
In December, the business also revealed it was considering the sale of its brand rights in the US and Middle East as it sought to boost its liquidity.
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